Directed Electronics extends contract with Sirius
Tuesday, April 29, 2008 at 10:05 AM
Tags: Directed, Retail, Sirius
Directed Electronics has extended their contract with Sirius from August 31, 2008 to January 31, 2009.The extension also includes a contract amendment that reduces Directed's exposure to warranty costs incurred from satellite radio products.
"In the third quarter of 2007, our earnings were adversely impacted by a $4.3 million increase to our warranty expense principally related to our satellite radio business," said James Minarik, President and CEO of Directed. "With this new amendment, the risk of unexpected satellite radio warranty expense is expected to decrease significantly, while concurrently improving our ability to provide superior service to our satellite radio customers. Cumulatively, we believe these changes will lead to improved financial results for this business."
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Comments
Why would Mel extend an agreement to Manufacture Sirius Radios for a year and a half? The only thing, I can see is that the FCC Denies or doesn't even act on the Merger, and he is then forced to sue. Or what, who makes Xm recievers?
Posted by: mitchman79k | April 29, 2008 10:49 AM
I mean wait ^ sorry
Posted by: mitchman79k | April 29, 2008 10:52 AM
The president of Directed mentions that they incurred a steep cost on warranties. Your company makes the crappy radios, Butthead!!!
I hate Directed!! Any audio company they acquire, just goes to shit.
Posted by: Albert | April 29, 2008 11:03 AM
Probably the reason that they extended the agreement is the fact that Direct does NOT make the Sirius radios. They are the distributor of them. Didn't we establish this already the last time this agreement was extended.
Posted by: another thought | April 29, 2008 11:17 AM
Are you saying that one of Directed Subsidaries makes Sirius Satellite Radios? Who makes Xm's?
Posted by: mitchman79k | April 29, 2008 12:08 PM
According to my math, the extension is for 5 months, not 18....
Posted by: iband | April 29, 2008 12:50 PM
XM's are made by the partners - Delphi, Pioneer, Audiovox, etc.
I think Sirius's are made by Directed.
The both are DESIGNED by the respective companies, just manufactured elsewhere. Like how Apple designs iPods and Foxconn makes them.
Posted by: Anonymous Coward | April 29, 2008 12:56 PM
Thanks for pointing out my math error.
Posted by: mitchman79k | April 29, 2008 4:19 PM
Does this mean the SIRGM3A will appear sometime soon?
Posted by: Jim | April 30, 2008 1:03 AM